Genesis Energy Reports $497.5 Million Net Loss and 8% Revenue Decline in Latest Quarter

Genesis Energy, L.P. reported a significant financial downturn in its latest quarterly results, with a net loss attributable to common unitholders of $497.5 million for the three months ended March 31, 2025, compared to a net income of $11.4 million for the same period in 2024. The company's total revenues decreased by 8% to $398.3 million, down from $434.4 million in the previous year. This decline was primarily driven by reduced revenues in the onshore transportation and services segment, which fell to $208.8 million from $248.9 million, alongside a decrease in marine transportation revenues.

The financial performance was notably impacted by a loss on the sale of the company's Alkali Business, which was completed on February 28, 2025, for approximately $1.425 billion. This strategic divestiture resulted in a loss of $432.2 million from discontinued operations, overshadowing the income generated from the remaining business segments. Additionally, general and administrative expenses surged by $25.9 million, largely due to transaction costs associated with the sale, and interest expenses increased by $7.7 million, reflecting higher debt costs.

Operationally, Genesis Energy underwent a reorganization of its reporting segments, now comprising offshore pipeline transportation, marine transportation, and onshore transportation and services. The offshore pipeline transportation segment generated $108.9 million in revenue, while marine transportation brought in $80.6 million. However, the overall segment margin decreased to $121.4 million, an 18% decline from the previous year, attributed to increased operating costs and lower throughput in key areas.

The company reported a cash flow from operating activities of $24.8 million, a stark decrease from $125.9 million in the prior year, reflecting the impact of the Alkali Business sale and changes in working capital. As of March 31, 2025, Genesis Energy had no outstanding borrowings under its senior secured credit facility, with a total debt of approximately $3.5 billion primarily from senior unsecured notes. The company anticipates that its available cash and borrowing capacity will support ongoing capital needs and growth initiatives, particularly as it completes its offshore growth projects expected in mid-2025.